New Zealand earns NZ$1.37b from cruise tourism in 2023-24

An economic impact assessment jointly commissioned by Cruise Lines International Association Australasia and the New Zealand Cruise Association revealed for the first time the full value of cruise tourism.

This was NZ$1.37b for communities around the country during the 2023-24 financial year, according to ‘The Value of Cruise Tourism,' prepared by AEC Group and expanding on data produced in past years by StatsNZ.

First detailed analysis

The first detailed analysis of cruise tourism in New Zealand includes direct expenditure by passengers, crew and cruise lines, worth NZ$637.8m, as well as indirect/induced expenditure of NZ$729.2m.

The direct cruise line expenditure totalled NZ$317.6m, including NZ$146.2m paid to ports and governments as fees and charges — 46% of cruise line spending.

Jobs creation

The new analysis showed cruise tourism supported 9,729 jobs last financial year and provided NZ$425.9m in wages for New Zealand workers.

‘While past assessments have shown only direct expenditure by passengers, crew and cruise lines, this latest analysis also calculates the indirect and induced benefits that flow through the New Zealand economy, as well as the employment created,’ CLIA Australasia MD Joel Katz said.

‘Cruise tourism provides enormous economic benefits, not just in the major cities but also dispersed among regional ports and destinations,’ Katz said.

Related:New Zealand hikes cruise passenger processing fees

‘For the first time we can now see the full value of New Zealand’s cruise economy.’

NZCA CEO Jacqui Lloyd said cruise tourism supports a huge variety of local Kiwi businesses, like tour operators, travel agents, hotels and restaurants, retailers, transport providers and port operators.

‘Cruising is also supported by an extensive supply chain, creating benefits for New Zealand farmers and food producers, winemakers, providores and maritime service providers,’ Lloyd said.

Costs and red tape

However, she warned that while the value of cruise tourism is high, rising costs and regulatory complexities are hampering the industry, leading to a fall in local cruise ship deployment.

‘While cruise tourism is thriving in the rest of the world, New Zealand is going backwards and local communities are facing a 20% reduction in visitor numbers over the coming years,’ Lloyd said.

‘New Zealand has become one of the world’s most expensive destinations for cruise operations and this is already costing Kiwi businesses millions of dollars as ships head elsewhere.’